Estimating Share Value Using the DCF Model Following are forecasts of Target Corporation's sales, net operating profit after tax (NOPAT), and net operating assets (NOA) as of January 30, 2016

	Reported	Horizon Period				Terminal
$ millions	2016	2017	2018	2019	2020	Period
Sales	$73,785	$75,261	$76,766	$78,301	$79,867	$80,666
NOPAT	3,312	3,387	3,454	3,524	3,594	3,630
NOA	21,445	21,872	22,309	22,755	23,210	23,443

Answer the following requirements assuming a terminal period growth rate of 1%, a discount rate (WACC) of 6%, common shares outstanding of 602 million, and net nonoperating obligations (NNO) of $8,488 million. a. Estimate the value of a share of Target common stock using the discounted cash flow (DCF) model as of January 30, 2016.

Instructions:

• Round all answers to the nearest whole number, except for discount factors and stock price per share.

• Round discount factors to 5 decimal places.
• Round stock price per share to two decimal places.
• Do not use negative signs with any of your answers.

		Reported	Forecast Horizon				Terminal
($ millions)		2016	2017	2018	2019	2020	Period
Increase in NOA			427	437	446	455
FCFF (NOPAT - Increase in NOA)			2960	3017	3078	3139
Discount factor [1/(1+rw)t]			0.9434	??	??	??
Present value of horizon FCFF			2792	??	??	??
Cum. present value of horizon FCFF		???
Present value of terminal FCFF		????
Total firm value		????
NNO		8488
Firm equity value		????
Shares outstanding (millions)		602
Stock price per share		????